Alleghany Highlands YMCA Fundraising Audit · weight section. Additionally, the Y offers land and...

Alleghany Highlands YMCA

Fundraising Audit

Jennifer F. Unroe

BUS195 – Topics in: Fundraising Development

October 17, 2016

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Overview

The Alleghany Highlands YMCA was founded in 1993 as a non-profit 501(c)(3)

organization. Initially, the YMCA operated out of the Covington Boys’ Home facility but quickly

outgrew its home and began a $7 million capital campaign to construct a new facility to better

meet the needs of the community.

Through the support of The Alleghany Foundation, local businesses and supporters of the

YMCA, the Alleghany Highlands Y opened its first full-service facility in December, 2007. The

building is a 37,000 square foot facility located in the Alleghany Regional Commerce Center.

Amenities include a walking track, full court gym, full size indoor swimming pool, and a

wellness center complete with cardiovascular machines, strength training equipment and a free

weight section. Additionally, the Y offers land and water group exercise classes, child watch and

fit kids for children ages 6 weeks to eleven years of age, swim lessons, swim team, specialty day

camps, and teen and senior adult programs.

In May, 2012 the YMCA was able to close-out the capital debt due to $269,327 in

funding from The Alleghany Foundation. Completing payments on this obligation saved the

YMCA $1,600 per month solely in interest payments.

The Alleghany Highlands Y is well known for its early learning programs, which include

the West Learning Center in Covington and Central Learning Center, now housed in the

Mountain View Elementary School, that provide a range of day care options for infants, toddlers,

and preschoolers. The Y works in partnership with the Alleghany County Public Schools and

Head Start to provide free services for children at academic risk. The YMCA also provides

afterschool care for school-age children in three locations. Through afterschool programs,

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children receive homework assistance and participate in a variety of activities, including health

and wellness, literacy, character development, and arts and humanities.

The mission of the Alleghany Highlands YMCA is to put Christian principles into

practice through programs that build healthy spirit, mind and body for all. Our cause is to

strengthen community.

The Y makes accessible the support and opportunities that empower people and

communities to learn, grow and thrive. With a focus on youth development, healthy living and

social responsibility, the Y nurtures the potential of every child and teen, improves the Alleghany

Highlands community’s health and well-being, and provides opportunities to give back and

support neighbors.

Our organization’s over-arching goals, as identified in a strategic planning work session

with Y-USA Resource Director Barry Watkins on September 29, 2016 are to: 1) Improve the

Health of the Community; 2) Reduce Chronic Disease/Prevent Obesity; and 3) Prepare Children

Educationally. As our board is in the infancy stage of developing a strategic plan, formal

objectives have not been finalized.

YMCA FUNDRAISING AUDIT 1

Alleghany Highlands YMCA

Fundraising AuditPolitical, Economic, Socio-Cultural, Technological (PEST) Analysis

Political

On the federal level: 1) the upcoming overtime wage regulation will cripple the Y’s

ability to conduct programming and provide supervision of both the wellness facility and the

early learning centers; 2) prior to implementation of the Affordable Health Care policy, the Y did

not offer health insurance due to lack of employee interest and need, in addition to the Y’s

inability to fund the program; 3) funding from the federal government does not fully cover the

Y’s cost of providing services for Head Start.

Local governments are unable to provide funding for Y operations, although Covington

provides free space for the West Learning Center (the Y pays a percentage of utilities). If the

city’s building is sold, the Y may be forced to find another home for the program even though

The Alleghany Foundation funded the cost of building renovations for the Y’s use.

Economic

Population declines, as evidenced by census counts over the past twenty years, continue

to plague the Alleghany Highlands. It is uncommon to find such a new Y, the size of the

Alleghany Highlands, with our community’s trending population base. Y-USA Resource

Director, Barry Watkins, notes that the national organization discouraged the inclusion of a pool

in our facility due to the area’s census and economic base. Yet the pool is one amenity that

consistently draws members and visitors to the Y.

The Y requires documentation of income before the award of any financial assistance for

member or early learning program fees. Assistance is provided on a sliding fee scale based on the

federal poverty level. Approximately 13% of Y memberships are subsidized at a discount of 20-


70%, and of that 13%, 57% (78 membership units) receive 70% off of their membership fee. In

the case of our early learning program, more than 90% of the students receive some form of

financial assistance, whether from The Alleghany Foundation, Department of Social Services,

Head Start, Early Head Start or Virginia Department of Education.

Not only does the financial assistance awarded by the Y significantly impact the revenue

needed to offset expenses and savings, it also paints a dim picture of the income levels of

Alleghany Highlands families who desire healthier lifestyles and quality care and education for

their children.

Since the merger of MeadWestvaco and RockTenn, the new WestRock Corporation that

previously awarded a significant amount of support through each local division and company

foundation, the Y experienced noticeable impact (See Market Analysis. Foundations). In addition

to a reduction of funding on both the local and Richmond levels, MWV previously reimbursed

employees $20 per month for their Y membership if the employee checked in at least twice to

the facility. This subsidy was eliminated with the merger and resulted the loss of 10-15

memberships to the Y (net effect $7,000+ annually).

Socio-Cultural. According to the Virginia Department of Health, more than 1 in 3 of the state’s

adults have pre-diabetes and 15-30% of that segment will develop type 2 diabetes within five

years. Currently, 1 out of 11 Virginians are diabetic. (Behavioral Risk Factor Surveillance

Survey, 2013). Not only does this have implications for the Y’s signature Diabetes Prevention

Program, but it also indicates a need for youth and adults to develop long-term nutrition and

exercise habits to reduce their risk of developing the disease.

The most used excuse of people who terminate their Y membership is the lack of time to

utilize the facility. One would surmise that the abundance of marketing related to prevention of


diabetes, cardio-vascular disease, cancer and obesity issues would move the public to action, but

we do not necessarily find that to be the case. More often, we find that people are act only

because of a healthcare crisis or rehabilitation need.

On a positive note, the Y has a very respectable national brand and is touted as a

significant economic asset for the Alleghany Highlands. The community is also beginning to

recognize the value of quality early childood education and the Y’s leadership in that area.

The Y’s early learning program is strong, reputable and public school educators confirm that

the Y does a great job of preparing children for the public school setting. It also assures families

with limited income equal opportunity for a strong educational foundation for their children.

Even so, there remains a perception in parts of the community that the Y’s early learning

program is only for poor, dysfunctional families and that the educational component is just a step

above babysitting services.

Technological. In order to maintain all reporting requirements both to Y-USA and the federal

and state governments, the Y must utilize operations and accounting software the makes life

easier for staff but is very costly for the organization, around $25,000 per year. Multiple building

safety systems add significantly to operating costs.

Competitor Analysis

Prior to a strategic planning exercise with the Y’s board of directors, department heads

met in August, 2016 to conduct a Competitor Analysis using a template provided by YMCA of

the USA. Three types of competitors were identified: 1) Direct Competitor. Does what we do;

has same or similar programs and services; same market; same geographic area; same

members/customers; 2) Substitutable Competitor. Meets the same needs as us but in a different


way – i.e.: hospital rehab; nannies competing with child care program; and 3) Resource

Competitor. Competes for resources our Y needs.

Staff identified the following direct competitors: Tanks Gym; local recreation

departments; church preschool programs; high school athletics; and community “travel ball”

programs.

Substitutable competitors included: community benefit runs/walks/events; in-home child

care; independent personal trainers; hospital and rehab facilities; dance studios; local community

college; state and federal parks; backyard pools and recreational waterways; businesses that

conduct group exercise programs for staff or fee-based for the public, such as Merle Norman

Cosmetics, Anything and Everything, Clifton Forge School of the Arts and dance studios.

Resource competitors was perhaps the longest list: Masonic Theatre and Bath County

Community Hospital (recent capital campaigns); Arts and Crafts Center, Alleghany Highlands

Arts Council, Clifton Forge Main Street and other Alleghany Foundation grantees; dance studios,

schools and parent-teacher organizations that run fundraising campaigns.

Staff then narrowed the list to three major competitors: Tanks Gym in Covington, owned by

the Garten family; Non-secular preschool programs; and Clifton Forge Revitalization.

Perhaps the most significant competition from the Tanks Gym lies in their admirable ability

to provide free or reduced memberships for local police and other segments of the community.

Time will tell if this business plan will generate enough revenue for long-term growth.

Non-secular half-day preschool programs in the Alleghany Highlands have great

reputations and are appealing to families who want their child(ren) to have a quality experience

with less structured time before they enter public schools. Typically, these programs do not offer

financial assistance.


The town of Clifton Forge is a remarkable example of what can happen when a community

gathers its resources for the common good. Visual or performing arts are well supported, and

volunteers with creative ideas seem to be more abundant. Marketing is cohesive even though

organizations work with a shoe-string budget. Competition for volunteers, funding dollars and

attendance, in the case of special events, is seen as the most significant competition between

Clifton Forge organizations and the Y.

The full competitive analysis is attached (See Appendix A).

Collaborative Analysis

There are a number of organizations and businesses with which the Y currently collaborates.

On-site exercise classes are conducted periodically for WestRock employees (non-Y members

pay a $10 daily fee to participate). Both Lewis Gale – Alleghany and Ridgeline Therapy

participate in a bridge program, to refer physical therapy graduates to the Y, allowing our staff to

continue to assist where needed and provide the patient with a free, one month medical

membership to the facility. The Y is also a member of the Community Alternatives for Positive

Prevention coalition and shares information and other resources for issues affecting Alleghany

Highlands’ residents.

Potential collaborations include increased sharing of facilities with community groups and

organizations, as well as joint fundraisers (i.e., area-wide Zumba-thon to benefit several

organizations) or grant funded projects to collaboratively address a specific need.


Market Environment Analysis

Individuals. Building on strategies suggested in this course, it is expected that the Y can

increase individual giving beyond the 80+ expected for 2016.

Business/Corporations. Giving from the WestRock Corporation is not expected to match that of

MeadWestvaco due to seemingly philosophical differences in philanthropic giving. No other

business in the Alleghany Highlands appears to be able to give to the Y at the same level of

MWV. However, there is opportunity to build deeper relationships with corporations such as

Lumos, Dominion Virginia Power, Shentel and other YMCA vendors.

Grants. The Virginia Department of Education funds the Virginia Preschool Initiative grant for

counties and cities across the Commonwealth and is one that the Y receives each year in

collaboration with Alleghany County Public Schools. While this grant supports preschool

education for 45 four year-olds, a local match of $50,000+ must be acquired. The Alleghany

Foundation typically provides matching funds (see below, Foundations).

Proof of collaborative efforts seems to be more critical than ever in order to attract grants

of significance. To be competitive, the Y needs to have a clear vision of the issues it can, and

should, address and then work diligently to establish the necessary partnerships and strategies to

be ready when opportunities are announced. The timing of many grant announcements and

submittal deadlines does not often allow a great deal of lead time to effectively establish new

partnerships at the last moment.

Foundations. In 2015, the Y was able to develop a relationship with the Jeanne G. Hamilton and

Lawson W. Hamilton, Jr. Foundation in West Virginia due to a connection between a Y aquatic

participant and a Hamilton family member. Because there were no public indoor pools in the

Lewisburg, White Sulphur or Union areas, about 3 percent of the Y’s membership commuted to

Commented [JU1]:


the Y from West Virginia to swim and participate in water aerobics, and the ability to

demonstrate medical benefits of water therapy enabled the Y to receive a $10,000 grant in

support of the aquatics program. The Hamilton family indicated a desire to continue their support

of the program as additional funds become available.

Of course, the Y would not be in existence without the support of The Alleghany

Foundation. Over the years, this foundation has provided more than $8.3 million in support of

facilities, programs and early learning program assistance. While we anticipate the foundation to

be supportive of the Y in the many years ahead, the limitations of that support are in question.

Prudence calls for the Y to search for ways to make financial assistance stretch further and to

reach out to school systems and governing bodies to help fund their fair shares of local preschool

education grants

There are two additional family foundations outside the region that the Y plans to

approach within the next two months for funding of necessary upgrades to the workout facility.

Proposals are currently being prepared.

Internal Analysis of Past/Current Fundraising Activities and Capabilities

The Y’s first annual campaign was conducted in 2012 with $76,000 raised of the

$100,000 goal. The most successful campaign was conducted in 2015 when the $98,000 goal

was surpassed by $2,300.

The Alleghany Foundation is in its fourth year of supporting the Y’s annual campaign

efforts with a dollar for dollar match up to $50,000, leaving the Y to raise the remainder of the

$100,000 goal.

Staff and board involvement. Even though the importance of 100% board participation has

been stressed, results have been less than desirable: 13 gifts from board members in 2015 (62%);


10 thus far in 2016; and an average gift both years of approximately $370. Staff participation is

very low, as the majority of positions are at, or just above, minimum wage and many struggle to

make ends meet. Six percent of staff gave in 2015; three percent in 2016.

Fundraisers. A number of small fundraisers have been conducted, with the most successful a

31 Days of December raffle that nets approximately $3,000, and a Yankee Candle sale by the

early learning families that nets about $2,000. The 2016 raffle will include an accompanying

online auction of jewelry, handcrafted arts, and other items donated by merchants.

Data. Staff began using the fundraising component of Daxko Operations (our internal operating

software) in 2015. Of note: 1) Eighty-two groups and individuals made donations in the 2015

and/or 2016 campaigns: 2) sixty-two individuals gave in 2015; 3) forty-one individuals gave in

2016 (exactly half of the 2015 donors have not yet made a 2016 contribution, yet we have 20

new donors thus far).

In 2016, 7 donors increased their level of giving, and 8 made no change. In 2015, 17% of

the gifts were made in December. Eleven individuals make recurring contributions through bank

drafts or payroll contributions

Strengths, Weaknesses, Opportunities, Threats (SWOT) Analysis

Strengths

Fantastic facility for the size of area; only full service facility for seniors and families.

Positive member, community and staff relations

Staff are nice, friendly ,committed to the mission and members, and work well together

Only indoor pool around; appeals to West Virginia residents

Facility maintenance has greatly improved, as well as the condition of the workout room.


We offer good youth sports programs such as gymnastics, youth basketball and the swim

team.

Finances are greatly improved from five years prior and the Y is currently debt-free.

Weaknesses

There is not enough time and resources to address all of our issues. We do not have a

presence everywhere needed; understaffed in gym and wellness center.

There are significant space constraints for programs that have the potential to grow our

organization and provide value to both residents and the economic value of our

community.

We’re doing the basics – not offering many things that other Ys offer.

There is a lot of dead time in the aerobics room, gym and pool, and the multi-purpose and

child watch areas are under-utilized during non-focused hours.

We do not have a strong sense from within staff and the culture of members relative to

policies, ethics of Y use and care (culture of disrespect of facility).

Opportunities

We are working with Alleghany County Public Schools to begin to offer annual swim

lessons for all second grade students. It is anticipated that this effort will grow the Y.

Threats

Unknowns about federal or state minimum wage mandates, changes to the Affordable

Care Act, and Department of Labor overtime regulations.

The trickledown effect of potential labor strikes, business closings or relocations, and loss

of funding from The Alleghany Foundation and WestRock.


Sources

Virginia Department of Health, Virginia Behavioral Risk Factor Surveillance Survey. (2015).

Retrieved from Virginia Department of Health website:

http://www.vdh.virginia.gov/diabetes/data/

Weldon Cooper Center for Public Service Demographics Research Group, July 1, 2015

Population Estimates for Virginia and its Counties and Cities. (January 27, 2016).


Appendix A

Comprehensive Competitor Analysis of the Alleghany Highlands YMCA (attached)

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